Enhanced Nepal-China Ties

Prime Minister Pushpa Kamal Dahal Prachanda’s visit to China from September 23 to 30 has given impetus to Nepal-China relations marked by mutual trust, cooperation, equality and respect for each other’s concerns and interests. As this is the first high-level visit in the aftermath of the COVID-19 pandemic, it carries importance in renewing, assessing and consolidating the bilateral bond between the two close neighbours. Nepal and China have inked many accords on economic cooperation, investment, border management, governance, policy coordination, trade facilitation, tourism, agriculture, aviation and education and so on in the past. The PM’s visit is expected to expedite the implementation of those agreements vital for the country’s development and prosperity. Nepal has been consistently supporting One-China policy and principle of Panchsheel, which has deepened trust and practical cooperation between the two countries. 

During his meeting with Chinese President Xi Jinping and Premier Li Qiang, the two sides held talks on a wide gamut of bilateral issues. Upon his arrival in Kathmandu, Prime Minister Prachanda said that his visit to China was highly successful and had taken the bilateral relations to a new height. “It was an opportunity to hold intensive bilateral discussions on enhancing mutual relations by making optimum use of the existing opportunities and possibilities of both countries,” he said. In recent decades, China has achieved tremendous success in poverty alleviation, digital innovation and economic prosperity. China’s best practice of development could be further leveraged for partnership in trade, investment, infrastructure development and inter-state transportation, connectivity, among others. Speaking at the Nepal-China Business Summit organised in Beijing, the Prime Minister called upon Chinese investors to invest in the sector of priority in Nepal, which has many potential areas for investment for Chinese business community.

The official visit of the Prime Minister witnessed many positive developments related to aviation, energy, trade, science, road infrastructure, health and agriculture. The Chinese government agreed to cooperate in operating direct flights at Pokhara Regional International Airport and Bhairahawa International Airport from China. It would start the fourth phase of the Araniko Highway Maintenance Project and maintenance of Syaphrubesi Rasuwagadhi road. The feasibility study of the Hilsa-Simikot road and Tokha-Chhahare tunnel route will be expedited. China will construct transmission lines in remote villages in the northern border region of Nepal and support to install solar systems in places where electricity is not available through the central power transmission system. Similarly, the process will be initiated for the second-phase expansion project of the Kathmandu Ring Road project. There is an understanding to open all checkpoints which were in operation prior to the pandemic. The Chinese government will provide grants to systematise some checkpoints.     

Nepal and China have agreed to implement the concept of Trans-Himalayan Multidimensional    Connectivity  Network  by  connecting  Tibet  and  Nepal  through  railways,  roads,  air services, power transmission lines, and  information  routes. They have also decided to finalise projects to be implemented under the Belt and Road Initiative. Nepal is striving to graduate to a developing country status from the least developed country by 2026. In this regard, Nepal can learn and benefit from China's success story in poverty alleviation, trade boost, international transport network and socio-economic partnership to attain this goal.  The Prime Minister's visit has added a new dimension to enhance the government-to-government and people-to-people ties subsisting between them since the ancient times.